Direct Action emissions proposal could mean steel makers that have already lowered emissions will be penalised

AFP

A sustainability expert has raised concerns that the proposed design of the Federal Government's Direct Action policy could favour companies that are high emitters of carbon dioxide.

Jemma Green, of Curtin University in Western Australia, says at the same time it could penalise those who've already put in place processes to reduce their emissions.

She says the sticking point is how the government plans to set baseline emissions criteria.

Ms Green says the policy favours the use of historical levels of emissions, but a better approach would be to set those baselines using best practice data.

She says the current proposal is unfair to those who are already reducing their emissions.

"Under this scheme, they'll be required to reduce their emissions when in fact they may have already done that, and they're in line with best available technology.

"Companies that produce larger than normal CO2 emissions, they'll only be required to make moderate reductions, when in fact you could argue that they should be reducing their emissions in line with sector norms."